SGX FX launches NDF FX for banks, LPs and brokers

SGX FX has announced the addition of Non-Deliverable Futures (NDFs) to its electronic FX communications network, SGX CurrencyNode, after being approved as a Recognized Market Operator (RMO) by the Monetary Authority of Singapore ( SAM).

Singapore is the largest exchange hub in Asia Pacific and the third largest globally, with SGX FX emerging as the premier marketplace for global FX futures and over-the-counter (OTC) participants.

The growing FX ecosystem in Singapore has requested access to NDF trading and SGX CurrencyNode has offered an NDF product that appeals to global banks, non-bank liquidity providers, broker-dealers and institutional investors.

Anchored in Singapore’s SG1 data center, the service provides access to multiple sources of OTC FX liquidity anonymously through one location.

Prime Brokerage Model for FX Spot, Precious Metals and NDF

Using a central core brokerage model, SGX CurrencyNode is currently releasing liquidity for FX Spot, Precious Metals and NDFs, with plans to launch FX Swaps and NDF Spreads at a later date. BNP Paribas and Deutsche Bank are the main central brokers for SGX CurrencyNode.

SGX CurrencyNode builds on the strengths of BidFX and MaxxTrader, combining buy-side and sell-side OTC solutions. SGX FX now offers comprehensive OTC FX technology solutions that meet the electronicization and automation needs of market participants, while connecting FX market liquidity providers to SGX FX’s OTC and futures market.

BNP Paribas and Deutsche Bank are the main prime brokers

Lee Beng Hong, Head of Fixed Income, Currencies and Commodities (FICC) at SGX Group, said, “This launch is an important step in improving price discovery, efficiency and the liquidity of Asian currencies. Our goal is to create a premier foreign exchange market that improves market participants’ access to over-the-counter and listed futures contracts, aggregating market liquidity and meeting all of their foreign exchange hedging and trading needs. with high efficiency and liquidity. Our FX offering is now complete with the launch of SGX CurrencyNode, and we thank MAS for their support and our industry partners for their active participation.

Lim Cheng Khai, Executive Director of MAS’ Capital Markets Development Department, said, “MAS welcomes the launch of SGX CurrencyNode, a key addition to Singapore’s vibrant FX trading ecosystem. With global regulatory developments in margin requirements affecting the forex industry, there will be an increasing need for sites that seamlessly integrate the OTC FX markets and listed futures. SGX Group’s investment in capacity to meet this demand will further enhance Singapore’s value to market participants in the Asian time zone.

Olivia Frieser, Head of Global Markets, Southeast Asia, India & Australia, BNP Paribas, said: “BNP Paribas is delighted to be part of the growth of the foreign exchange markets in Singapore. We see the Singapore hub growing in importance for the FX markets and expect SGX CurrencyNode to support volume growth. We look forward to supporting SGX CurrencyNode as a prime broker, with our leading FX Spot and NDF franchise and extensive currency coverage.

Darren Boulos, Co-Head of Global FX for Asia-Pacific, Deutsche Bank, said: “Connectivity and deep credit relationships are at the heart of a well-functioning electronic communication network. Being able to provide SGX CurrencyNode with key Forex participants underscores the breadth of our network and, more importantly, the performance and consistency that our Forex business delivers year after year. From providing liquidity in spot markets to innovative solutions across the entire product line, we will continue to serve and meet the varied needs of our customers and partners.

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